Economic Development Reduces Tolerance for Inequality: A Comparative Analysis of 30 Nations

25 Pages Posted: 24 Nov 2008

See all articles by Jonathan Kelley

Jonathan Kelley

International Survey Center; University of Nevada Reno - Department of Sociology

M. D. R. Evans

University of Nevada, Reno - Departments of Resource Economics and Sociology

Date Written: November 21, 2008

Abstract

Do conceptions of just rewards vary with economic development? To investigate this question we use the 1999-2000 "Inequality-III" round of the International Social Science Project together with other data in the World Inequality Study. There are 30 countries and 19 568 individual respondents in the full-time labor force. We measure inequality by the Gini coefficient for the general public's report of the legitimate earnings for their own occupation. OLS and multilevel analyses show patterns of influences very similar to those found in earlier research, with one striking exception. By far the most important influence, not previously documented across so many countries, is the prosperity of the nation: people in poor nations are much more accepting of inequality than are people in prosperous nations. If this cross-sectional pattern reflects developmental trends, as is likely, then it seems that economic development creates equalitarian attitudes. However, true egalitarianism is not held as ideal in any country, and so is not an appropriate goal for public policy. Instead the ideal level of inequality differs among countries. These ideals are a more appropriate benchmark for policy. We suggest that these benchmarks, available here for 150 nations, should be the starting point for future assessments of income inequality.

Keywords: inequality, development, attitudes, cross-national, public policy, survey

JEL Classification: D31, D63, D78, I30, J31, J38, O10, 015

Suggested Citation

Kelley, Jonathan and Evans, Mariah, Economic Development Reduces Tolerance for Inequality: A Comparative Analysis of 30 Nations (November 21, 2008). Available at SSRN: https://ssrn.com/abstract=1305394 or http://dx.doi.org/10.2139/ssrn.1305394

Jonathan Kelley

International Survey Center ( email )

18124 Wedge Parkway #1035
Reno, NV 89511
United States
415 315 9806 (Phone)

HOME PAGE: http://www.international-survey.org

University of Nevada Reno - Department of Sociology ( email )

United States

Mariah Evans (Contact Author)

University of Nevada, Reno - Departments of Resource Economics and Sociology ( email )

1664 N. Virginia St
Reno, NV 89557
United States

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